Equal Pay and the Gender Pay Gap

David Rutley Excerpts
Wednesday 1st July 2015

(9 years, 4 months ago)

Commons Chamber
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Gloria De Piero Portrait Gloria De Piero
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I always welcome and applaud senior women in our politics. I do not want to be too churlish, but I will put on record that the Labour Benches still have more women MPs, despite the fact that we left office, than all the other parties put together.

By monitoring and assessing the evidence, the annual equal pay check will help us to determine whether the continued existence of the pay gap is driven mainly by a lack of women in top jobs, and enable us to identify the industries in which women are paid less because they are mainly employed in flexible or part-time work.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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The number of women in top jobs is an important issue. I had the privilege, in my business career prior to coming to the House, of working with top female executives such as Angela Spindler and Libby Chambers—people I really respected. Good progress has been made to increase the representation of women on boards. Does the hon. Lady believe that this will help to tackle the challenge that she is rightly putting to the House today?

Gloria De Piero Portrait Gloria De Piero
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I am delighted that we have more women on boards, but we have so much further to go. We want women to take decisions and to be in executive roles on boards. I am afraid progress on that is really not good enough.

Oral Answers to Questions

David Rutley Excerpts
Thursday 26th March 2015

(9 years, 8 months ago)

Commons Chamber
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Henry Smith Portrait Henry Smith (Crawley) (Con)
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11. What steps he is taking to promote regional growth.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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15. What steps he is taking to promote regional growth.

Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
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Since this Government were elected, nearly 2 million more people are in employment, with jobs created in every region of the country—60% outside London and the south-east. The 28 city deals and 39 local growth deals are helping drive local growth by transferring powers and resources from Whitehall to local economies.

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Greg Clark Portrait Greg Clark
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My hon. Friend is absolutely right. It is notable that, during the time when £20 billion was spent on regional development agencies by the Labour party, the divisions within our economy grew, whereas, under this Government, the growth in jobs and employment right across the country is accelerating, which is good news for every part of the country.

David Rutley Portrait David Rutley
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I congratulate my right hon. Friend for all that he has done to help take forward the vision of a northern powerhouse. That will lead not just to important infrastructure developments, but to the transfer of power to local authorities and a much-needed focus on key industrial sectors in the north-west. Will he tell the House what steps he has taken to help take the life science corridor forward in north-east Cheshire?

Greg Clark Portrait Greg Clark
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One principle behind our reforms in devolving powers is that every part of the country is different, and it is that difference that plays to the strengths of those reforms. Throughout this Parliament, my hon. Friend has been a formidable champion of the science sector in Cheshire and across the north-west. It is doing very well and creating jobs. I thank him for his efforts during this Parliament.

First Aid Techniques: National Curriculum

David Rutley Excerpts
Tuesday 10th March 2015

(9 years, 8 months ago)

Westminster Hall
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Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
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It is a pleasure both to serve under your chairmanship, Sir David, and to follow the hon. Member for Bolton West (Julie Hilling). I am getting déjà vu; I think this is our fourth debate on this issue—it would be easy just to dust off our previous speeches. I have been supporting this campaign passionately, and I am delighted that next Wednesday, I will be turning up at the Minister’s office to have yet another push. It is a relentless campaign from us, and like “The Shawshank Redemption”, surely it would just be easier to agree with us.

As the hon. Lady said in her excellent speech, 30,000 people a year will have a serious cardiac arrest outside hospital, and disgracefully, only one in 12 can expect to survive. Ambulances take six to 12 minutes to arrive, and for every minute that passes in which immediate CPR is not given, the survival chance falls by 10%. If immediate CPR action is taken, the survival chance rises threefold. It is a great, crying shame that most people are simply not able to help or will walk by, not having the confidence to step in. In previous debates, we have heard horror stories of groups of people standing around and taking photographs, with nobody being willing to step forward. Therefore, it is perhaps no surprise that we have such a disgraceful survival rate of just one in 12.

We are all committed to trying to empower people with the skills and confidence to step in. As the hon. Lady so eloquently put it, frankly, anything is better than doing nothing. Someone cannot be deader than dead.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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I congratulate the hon. Member for Bolton West (Julie Hilling) on securing the debate and on her stirring words, and I also congratulate my hon. Friend the Member for North Swindon (Justin Tomlinson) on the speech that he is making. I have learned a lot not only from this debate and the campaigns that they have put forward, but from St John Ambulance and British Red Cross locally. They have taught me what more I need to do. Will he join me in congratulating them on their work across countless constituencies? Is there more that we can do to support their efforts in helping this important campaign?

Justin Tomlinson Portrait Justin Tomlinson
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I thank my hon. Friend for his excellent intervention. I think we would all join together in congratulating St John Ambulance on their brilliant work, not just in his constituency, but right across the country, and a number of organisations are desperate to step in and support the activities that we are pushing for in schools. This is a win-win for so many different people.

One reason why I am so passionate about this issue and have worked so closely with the hon. Member for Bolton West, a number of other MPs, and particularly, the British Heart Foundation—it has been fantastic in providing statistics and doing work that I will come back to—is that I found my father after a critical cardiac arrest. I was aged 12. I came into the shop where he had been collecting the money, and I kicked into autopilot. I probably was not particularly good, but it was better than nothing until passers-by came by. When we see the statistics, we are often blinded by the numbers, but I can personally vouch for just what happens when someone is in that situation.

Our aims are simple: we want people to recognise an emergency, to know that they should contact an ambulance immediately, and to administer CPR. Things have changed—it is not the kiss of life now. Simply by doing compressions in the right place, we can potentially keep people going for 15 minutes or even longer and give them a good chance of survival. We want people to use an automated defibrillator, and of course I support the campaigns to put them into as many public places as possible. My hon. Friend the Member for Brigg and Goole (Andrew Percy) has been tireless in raising that issue in debates and parliamentary questions.

We have pushed on this matter time and again. We had the e-petition with 100,000 signatures. We have had visits to Downing street. This is, I believe, our fourth debate. We have had parliamentary questions. We have had meetings and, as I said, there is another one in a week’s time. And we have responded; we have listened. The challenge is that people do not like to be prescriptive in the national curriculum. I understand that. I also understand that at one point there were 150 campaigns pushing for things to be in the national curriculum, and that when we asked for two hours in the curriculum, that was too much. We have gone away and turned that two hours into 30 minutes—the British Heart Foundation in particular has been fantastic on that point. A one-off 30-minute session can equip people with the skills to be life savers.

We are flexible. We are not proud. We do not mind whether the training takes place in biology or physical education lessons. It could take place during a school assembly. It could happen at the beginning or end of term. It could be given at any age. It could be part of citizenship education. We do not care, as long as there is a 30-minute window at some point during the school cycle. Even more impressively—this is for the Treasury—the British Heart Foundation has already purchased all the packs, so there would be no cost to the Exchequer, and each pack includes a DVD, so staff would not need extensive training. As long as they can put a DVD in, we will be well on the way.

The hon. Member for Bolton West reeled off statistics that showed how supportive of the idea teachers, children and parents are. Her statistics were even more favourable than mine, so I have put a big red line through mine in my notes. Importantly, we as politicians are not used to being popular, and this is an opportunity for us to garner huge support from teachers, children and parents.

We have to make this training compulsory. It needs to fit somewhere in a child’s education. We can create a generation of life savers. We have seen that, in countries such as Norway, survival rates reach as high as 50%. In this country, that would mean something like 5,000 more people surviving every year, because of a simple 30-minute gesture. We have a duty to create the next generation of life savers, and I hope that we seize that opportunity.

Oral Answers to Questions

David Rutley Excerpts
Thursday 15th January 2015

(9 years, 10 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Well, the junior Minister clearly has a keen sense of his own power.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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12. What steps he is taking to support outdoor recreation.

Helen Grant Portrait The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mrs Helen Grant)
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Via Sport England, we invest nearly £70 million each year in outdoor sporting activities, and through VisitEngland and VisitBritain we will be promoting visits to the great outdoors through our “Countryside is Great” campaign.

David Rutley Portrait David Rutley
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Given the importance of tackling the increasing challenge of physical inactivity and given the potential of tourism in rural communities, does my hon. Friend agree that this is a good time to consider establishing a national strategy for outdoor recreation to sit alongside the Government’s successful sports strategy, to get more people active outdoors?

Helen Grant Portrait Mrs Grant
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I agree absolutely with my hon. Friend that outdoor recreation is fantastic for our country, and we very much appreciate the work he does in promoting the benefits. I have had several meetings across Government on this issue, and I am engaging with the sector more widely. I will present more on this vision soon, and will be happy to update him in due course.

Small Business, Enterprise and Employment Bill

David Rutley Excerpts
Wednesday 19th November 2014

(10 years ago)

Commons Chamber
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Sheila Gilmore Portrait Sheila Gilmore
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And of course that feeds directly into the fact that the Government’s deficit is rising again in this financial year. That is primarily because the tax take has not been as expected, which is a serious problem. A lot of people have been told that they have to make great sacrifices so that the Government can close the deficit, but now they are told that nothing is really improving, or at least it is certainly not improving as fast as they were promised.

It is also disappointing that, when the law on zero-hours contracts is to be changed, a clear enforcement mechanism is not being built into the Bill. A lot of people do not know much about their contract of employment—and that is if they even see one, because many people do not get much chance to see a contract even when they have started a job. People need to get good information about the content of their contract and the rights that they have. We all have people coming to our surgeries for assistance and saying, “I didn’t realise that these were my terms and conditions of employment.” They might only realise when something goes wrong.

To think that people will understand that a certain clause in their contract is unlawful assumes a degree of understanding and information that a lot of people do not have, especially when they are just glad to get any job at all. They think, “That’s great, I’ve got the job”, but they do not necessarily inquire at that stage about all the problems they might face. It seems strange not to make it easier for people at least to enforce the small change that the Government are offering.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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I understand and appreciate the hon. Lady’s argument, which she is making with passion, as she regularly does. Does she not recall that in one of the evidence sessions of the Public Bill Committee, the TUC, which rightly represents workers’ rights, was clear that a good number of its members are on zero-hours contracts by choice and said that it was opposed to their abolition?

Sheila Gilmore Portrait Sheila Gilmore
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I am sure that some people would like the Opposition to table amendments to abolish zero-hours contracts, but our position has never been to say that they should be abolished totally. The question is whether people have a genuine choice. Just as an employer can say, “I need you on Friday evening, Saturday afternoon and Sunday morning,” the employee should be able to say, “I can’t do Sunday morning. I want Monday or Tuesday instead.” The question is whether there is a genuine two-way relationship, and in a lot of circumstances there clearly is not. That shows that we have to give people protection.

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Jo Swinson Portrait Jo Swinson
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I shall focus most of my remarks on the debate about the national minimum wage and zero-hours contracts, but I would like briefly to set out the effects of Government amendments 61 to 64, relating to the public sector exit payment measures. The measures are designed to enable the proportionate recovery of exit payments when a high-earning individual returns to the same part of the public sector shortly after their exit. The amendments are technical in nature and simply seek to clarify that the obligations can be placed on individuals who received exit payments when it is likely that they will swiftly return to the same part of the public sector.

David Rutley Portrait David Rutley
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I wanted the Minister to pause for a second on this issue, because it is important to recognise that this Government are taking action on something that has been going on for far too many years. Does she agree that taxpayers across the country who are concerned about these matters will understand that we have taken action so that high earners will not be taking an exit payment and then going off to another job in a few weeks’ time?

Jo Swinson Portrait Jo Swinson
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My hon. Friend makes an important point. This is a basic issue of fairness as well as value for money for the taxpayer. That is why this important measure is part of the Bill. The measure will allow the Government, for instance, to require a high earner who received an exit payment to make arrangements to repay the compensation before they are allowed to take up new employment in the same sub-sector of the public sector. In addition, the amendments clarify that obligations can be placed on the public sector body responsible for the exit payment and the subsequent authority that re-engages the individual as an employee, contractor, or office holder. The amendments are in line with the Government response to the consultation on these measures, which was published on 28 October. I am sure all hon. Members will agree that these amendments are an important clarification, and I look forward to support for them.

Turning to the more substantive issues, I thank hon. Members for tabling the amendments in this group and for the constructive and positive debate we have had. The hon. Member for Hayes and Harlington (John McDonnell) was unable to stay, but I thought his contribution was particularly good when he said that if we could not accept the amendments we could respond to their spirit. I very much hope to be able to do so. I shall set out why I do not think the amendments should be accepted as drafted, but I recognise the genuine concern expressed by hon. Members and we share the commitment to tackling the issues. The debate is really about the best way of doing that. It may not be through legislation, but I will explain how the Government intend to tackle the genuine issues raised.

Oral Answers to Questions

David Rutley Excerpts
Monday 27th October 2014

(10 years ago)

Commons Chamber
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Nick Boles Portrait Nick Boles
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That is a powerful message, and I am grateful to my right hon. Friend for delivering it. It is a message that all of us in the House, whatever party we represent, should be taking to every business and employer in our constituencies. If they are not offering apprenticeships now, why not? What is holding them back? We want them to come forward and offer apprenticeships and traineeships for our young people.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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11. What steps she is taking to equip young people with the skills they need to succeed in the workplace.

Nick Boles Portrait The Minister for Skills and Equalities (Nick Boles)
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We have reformed the way in which 16-to-19 education is funded and the qualifications that count in league tables. We have also raised the quality of apprenticeships and traineeships, and enabled more students to take part in work experience. Students who do not hold at least a grade C in maths and English GCSE at age 16 are now also required to continue to study those subjects.

David Rutley Portrait David Rutley
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It is good to see schools such as All Hallows Catholic college making enterprise a priority in education. However, a recent study by the Chartered Management Institute pointed out that while 89% of businesses rate business experience as part of education, only 22% are prepared to provide such opportunities for young people. What steps are the Government taking to encourage more businesses to step up to the plate and provide opportunities for young people across the country?

Nick Boles Portrait Nick Boles
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The key change that we have made is to make it easier for colleges and schools to go out and actively create those work experience opportunities. Previously, colleges and schools offering 16-to-19 education were funded on the basis of the qualifications that students were taking, and that meant that they were not being rewarded for their work in creating work experience. Now they are funded per student, and work experience is specifically allowed as one of the things for which they can be funded. That has meant that further education colleges are now directly incentivised to create those work experience opportunities.

Oral Answers to Questions

David Rutley Excerpts
Monday 21st July 2014

(10 years, 4 months ago)

Commons Chamber
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Sam Gyimah Portrait The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)
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We want to see a strong network of children’s centres in place across the country, offering families access to a wide range of local, flexible services. In fact, a recent survey showed that, under this Government, a record number of parents—more than 1 million—were now using children’s centres, and that the centres were reaching more than 90% of families in need. I guess that listening to the views of families is what is important here.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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T8. I welcome the Government’s positive approach in creating a fairer funding formula for schools. That will mean that pupils in Macclesfield will be receiving a £125 cash boost. Can my right hon. Friend assure the House that a fairer funding formula will continue to be a strong focus under this Government?

David Laws Portrait Mr Laws
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I can promise my hon. Friend that a fairer funding formula will be delivered in 2015-16. His own area will receive an additional £5.7 million. This is the biggest move towards fair funding across England in a decade, and it is long overdue. It should have taken place under the previous Government, and it will take place under this one.

Secondary Schools (Accountability)

David Rutley Excerpts
Monday 14th October 2013

(11 years, 1 month ago)

Commons Chamber
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David Laws Portrait Mr Laws
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I entirely agree with my hon. Friend. I am delighted to hear that, as ever, a warm welcome awaits the Secretary of State, at that school and indeed all others in the country.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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I, too, welcome the statement. I am particularly pleased to be able to add my welcome and support to those of many employment organisations. I especially welcome the focus on destination measures: true outcomes of educational attainment. Can the Minister shed more light on that? Will the destinations include apprenticeships and higher apprenticeships, and are there lessons to be learnt from other countries for the purpose of this important measure?

David Laws Portrait Mr Laws
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Obviously we will be considering educational destinations, apprenticeships, and employment destinations with training. We need to ensure that we can collect all the information properly so that when schools receive it on their websites they recognise it, regard it as fair, and regard the Government as having captured accurately data which currently we do not possess in a single place, but believe that we can bring together.

Adult Literacy and Numeracy

David Rutley Excerpts
Thursday 10th October 2013

(11 years, 1 month ago)

Commons Chamber
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Nigel Evans Portrait Mr Nigel Evans (Ribble Valley) (Ind)
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It is a delight for me to make my first speech in the Chamber for three years on this subject. I thank the hon. Member for Gosport (Caroline Dinenage) for giving me the opportunity to do so by securing the debate. I also thank the hon. Member for Huddersfield (Mr Sheerman) for remarking that he was my lecturer at Swansea university—he has a lot to be blamed for in many ways. I always said that he taught me all I know about politics, and he reminds me that I came into Swansea university as a little Tory and came out a bigger Tory. That is a fact.

This is a good debate. We need to do more about literacy and numeracy, and I was delighted to hear what the Leader of the House said about it in business questions. The hon. Member for Huddersfield is absolutely right that it is not a party political matter. It has dogged this country for decades under different Governments, and we have to look harder for the solution. It is about making people better not simply so that they can get better jobs but so that they can fulfil their ambitions and lead better lives for themselves. It is a quality of life thing, and that is vital. Millions of people are affected in this country alone. The OECD report has been mentioned, and it is shocking that we are so low down the table—almost at the bottom. All Members should hang their heads in shame that that is the case, and we need to do more.

Dyslexia has not yet been mentioned. We need to do a lot more to understand people who suffer from it—they are not stupid people, but they need better help and earlier diagnosis. If that does not happen early on, we can find that they lack interest in what is going on in school because they feel that they are not up to it, which is not the case. Some 10% of people in this country suffer from dyslexia, and apparently 4% severely so, so we need to do a lot more.

We have heard about the shocking number of people who are innumerate and illiterate, and the same goes for people in prison. There are 84,000 people in prison at the moment, and we need to do a lot more for them to ensure that they get the education they need while they are in prison.

The hon. Member for Gosport mentioned libraries in prisons and the good they do. When local authorities up and down the country are looking for savings, it is shocking that one of the first and easiest targets they choose are libraries. “Let’s close the library”—well no; let us ensure that the libraries stay open, encourage more people into them, and use them for adult education classes so that people can become more literate and see the wealth of books available. That is one of the reasons people should want to learn to read, write and be numerate.

About 3 million pupils who leave school after GCSEs are ill-equipped for life, and, as I said, about 40,000 of people in prison are illiterate, and 55,000 are innumerate. We must do more to make education in schools more relevant to pupils so that they see why they need to read and write. Nothing surprises me more than when I go into a pub and see youngsters playing darts. They are able to add up what they have just scored and deduct it from, I think, 360. I am there with chalk and a board trying to do that, but they do it in their heads. They are so much better at it because it is relevant to them and that is why they are able to do it. On literacy it is the same with texting, and people substitute certain words for letters and so on. That may be okay, but life is not Twitter and we do not lead our lives in 140 characters. It is much richer than that, and we must ensure that people get the full wealth of knowledge and culture that is denied to them if they are not able to read and write.

I do not believe that teachers want demotivated classes with youngsters who lack ambition or hope, and where the only thing they look forward to is the “X Factor” on television. There are 25 letters in the alphabet apart from X, and if we combine them there is more wealth out there than there is on “X Factor”.

I was on the Council of Europe for five years, and nothing shamed me more than the fact that there were people from other countries who seemed to speak English better than we do. They came from Denmark, Sweden—a number of countries—and their ability to speak English as well as their own language, and probably Italian, Spanish and French while they are at it, was amazing. In this country, however, we have statistics showing that people cannot even speak our country’s national language. We must do more.

The hon. Lady mentioned stigma, and we must stop all that. People have not failed; we have failed them because they are unable to read and write. It is not their stigma but ours, and we—rather than those people—should have that stigma. We must correct that and give people opportunities to be able to read and write. Lifelong learning is important because education does not finish when people are 18 or 19, or when they leave school or university. It goes on for ever, and we must make opportunities for people to have lifelong learning.

The number of immigrants who have come to the country over the years is phenomenal and many simply do not have the skills to speak English. That should be a priority for us. I know we say that people should not come to the country and settle down unless they are able to speak English, but we must recognise that millions of people have come in who cannot do that. What are we going to do about that? Let us not deny to immigrants who have settled in this country, rightfully and legally, the opportunity to play a full role. Let us do more for immigrants who have settled in the country but who are not able to speak English.

When schools finish and the doors and gates are locked at night, it is a crying shame that they are not thrown open for all the people who want to do night classes. Community centres have been mentioned, but lots of schools up and down the country are closed and should not be. The lights should be on at 7 o’clock in the evening so that people can go there, and there are lots of resources, including teachers who would be willing to be mentors and teach those who want to read and write.

If we want people to have fuller lives, and if we want people to be better citizens and have better opportunities for employment, we must ensure they can read, write and be numerate. We must work harder. We cannot let people down as we have for decades.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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My hon. Friend, as well as other hon. Members today, makes a powerful speech. Given the importance of the internet and the digital economy in helping people to access information and to learn, does he agree that it is vital that IT skills are linked to helping people to learn literacy and numeracy skills, including older people who have difficulty accessing public services? Does he recognise the important role that organisations such as Age UK play in that important task?

Nigel Evans Portrait Mr Evans
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I agree with my hon. Friend—that is exactly what should happen. When I am learning French or Russian, I use the internet. There is an amazing amount of stuff in different languages to read on the internet. It is the same for those who want to learn English, but they need the IT skills to do that. Those things can be combined—lifelong learning clearly involves IT.

Manufacturing and SMEs

David Rutley Excerpts
Wednesday 4th September 2013

(11 years, 2 months ago)

Westminster Hall
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John Stevenson Portrait John Stevenson
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The right hon. Gentleman makes a valid point. I assumed that many people would raise the question of lending, so I have specifically avoided it, but it is good that he has raised the issue.

My simple conclusion is that, if our economy is to rebalance and grow, and if our nation is to prosper, manufacturing must be central to that change.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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I thank my hon. Friend for securing this debate. Manufacturing is critical to the economy, and he is making a powerful case.

Interestingly, the statistics show that not only is manufacturing vital to our economy but average weekly earnings in manufacturing are £557, which is second behind only finance and business services. Does my hon. Friend agree that that is good not only for the economy but for those who are fortunate enough to work in that important sector?

John Stevenson Portrait John Stevenson
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My hon. Friend makes a valid point. People sometimes forget that in manufacturing there are many highly paid jobs—it is not a low-wage sector, as many think.

There are already signs that our economy is beginning to recover and that manufacturing is playing its part. In the food and drinks industry, exports are up to more than £12 billion; the manufacture of cars is now at its highest level since the 1970s; we are still a world player in pharmaceuticals; we are a leading nation in aviation; and this Monday there was the announcement of a significant rise in manufacturing activity—all welcome signs. It is easy, however, for parliamentarians and Ministers to get caught up in the larger, more glamorous companies with the sexier products such as cars and planes, rather than with the more mundane products, such as storage doors or food, even though those are equally important and often produced by SMEs.

In reality, SMEs are central to the future success of manufacturing, whether as part of a supply chain or as a stand-alone entity with a local or national market share, whether innovating and expanding alone or as part of the next national or international conglomerate. The purpose of today’s debate is to examine what Government can do to support, encourage and enhance the SME manufacturing sector. Government support, assistance and encouragement are critical to the success of our manufacturing sector. The debate is about a few specific issues whereby a role for Government can help businesses of varying sizes to prosper.

Other Members will have their own ideas, as will Government, lending being the obvious one—it has already been referred to, but I am avoiding lending today, because I am sure that others will touch on it. It is important that we all share ideas, to ensure maximum benefit for the manufacturing sector and the industry. It is a given that Government should create an environment in which all businesses can succeed: a tax regime that is friendly, rewarding and supportive; regulation that is sensible and proportionate and ensures a level playing field for businesses to work and compete on; and the confidence that it is important for Government to give to business, so that they are supportive and consistent, without any big surprises for industry.

I want to touch on four specific key areas; first is the definition of an SME. According to European Union law, the main factors determining company size are the number of employees, the turnover and the size of the balance sheet. Those factors can then be divided: micro-businesses have fewer than 10 employees, turnover of less than €2 million or a balance sheet of €2 million; small businesses have fewer than 50 employees, turnover of €10 million or a €10 million balance sheet; and medium-sized businesses have fewer than 250 employees, turnover of €50 million or a €50 million balance sheet.

There are, however, varying definitions in the UK, with one under the Companies Act 1985 and a different one under the business bank scheme. For the purposes of research and development schemes, Her Majesty’s Revenue and Customs defines SMEs in a different way again. In fact, depending on which definition is used, an SME can have anywhere between 10 and 500 employees or a turnover of between £1.7 million and £86 million.

The real issue is that the actual definition of an SME is not helpful. It would be far better to break the definition down into different sizes and types of businesses with their own reference. A clearer idea of exactly what type of businesses we are discussing is necessary, rather than lumping them all together.

More definitions would be beneficial and help to target support to the right businesses in the right circumstances. For the manufacturing sector, that would demonstrate and recognise the importance of companies and raise their profile, and identify a sector as important in its own right. Any definition needs to acknowledge that larger manufacturing companies often have little in common with smaller ones and they should therefore not necessarily be linked together.

Size and numbers matter: they have an impact on how businesses structure themselves, how they function and what type and level of support they seek. I certainly find it hard to equate a manufacturing company with a turnover of several million pounds and, for example, 200 employees, with a two-man engineering business with a turnover that does not even exceed the VAT threshold. A better group of definitions, certainly in the manufacturing sector, would help to simplify a business’s ability to access the correct support, help and guidance that it may be seeking. That might also help Government to steer a business of a particular size or industry towards the appropriate support.

My second issue is simply what support there is, and whether it reflects the actual needs of manufacturing. What can Government actually do? What is the real support and help that Government can give to the manufacturing sector? Clearly, small businesses have their own particular issues; large businesses that want to expand are likely to have different requirements and problems; and there are individuals who want to start their own small manufacturing businesses.

A significant number of issues therefore need to be addressed for businesses of different sizes and complexity within the manufacturing sector: strategic advice and business plans will vary depending on the size of the business; procurement, too, is different for small and large businesses; there is involvement with UKTI—UK Trade & Investment—for exporters; skills and qualifications depend on the needs of the different sizes of businesses; there is the issue of funding, grants, loans and, as mentioned, banking facilities; there is involvement with trade federations, because larger organisations invariably hold greater sway and influence, or relations with the chamber of commerce; there is legal, accountancy and intellectual property rights advice; there is dealing with relevant regulation, because cars, for example, are very different from the food industry; and, equally important but sometimes forgotten, there is succession planning.

I appreciate that the Government are helping where they can—the manufacturing advisory service is an example—but there needs to be accessibility and relevance to the manufacturer. A common complaint is that the Government do not understand the user, and that their support is inaccessible or inappropriate. I appreciate that the amount of such support will vary considerably.

Larger manufacturers will contact Ministers or officials and have an ongoing dialogue. They are more likely to work through the trade organisations, and many will have the resource to research matters or to take paid advice. To be honest, a small manufacturing business in Carlisle with five employees is unlikely to contact central Government, while a 200-employee company with a £30 million turnover may well do so. Often, however, the smaller businesses have the greater needs, but they find it more difficult to access such help from Government.

I acknowledge that the Department for Business, Innovation and Skills is having some success. The best example is the R and D credit uptake, which has been welcome and demonstrates a successful policy and implementation. My concern, however, is that much of the effort is not as effective as it could be for many businesses. AXA Business Insurance carried out a study in the UK suggesting that many are unaware of the initiatives designed to help them. Darrell Sansom, the managing director of AXA Business Insurance, said:

“The numbers of small businesses in the UK continue to climb rapidly, but it seems that many could be missing opportunities to help their business along the way through a lack of awareness of the support that may be available to them.”

That leads me on to my next two points. Talking about government can be slightly misleading. What do we actually mean? Which aspect of government is the most appropriate? Today, I am clearly ignoring the EU, but we still have central Government as well as local government. There are clear issues with central Government: where to go, who to talk to and what Government should be doing. What advice and level of support should they be giving? That applies equally to local government, which really does matter. In many respects, the local council matters more for small manufacturers and businesses than central Government.